After a +5% rebound by the markets in only three days we should be looking for a pullback.
The spike by our two remaining plays was outstanding. Being short puts on strong stocks in a bull market is a very enjoyable experience. I can't wait until the market starts trending up again so we can do some deep in the money plays and some with longer durations.
On Friday our Cliffs Natural Resources position hit the profit target at 20-cents and gave us a dollar in profits.
Chipotle Mexican Grill spiked at the open but retreated slightly at the close. Considering it was up +$10 in three days I am not surprised. The profit target on that position is 25-cents and the option low on Friday was 30-cents. One more opening spike and I think we will hit our target.
I raised the stop on CMG to $161.75 just in case the market decides to take profits. Any movement to the downside should take us out for a profit.
After a +5% rebound of +450 Dow points in only three days I am not excited about loading up on new positions. I will be perfectly happy to exit our remaining position for a profit and go back to cash. The economic sentiment may have improved slightly but Wednesday's FOMC minutes are going to be critical to keeping the rally going.
Tuesday is going to be a very low volume day ahead of those FOMC minutes. I am not going to recommend any new plays until we see what the FOMC brings and hopefully get a profit taking day on Tuesday.